Posted by alikin on August 23, 2003 at 06:23:15:
O.k no questions more
thank you!
To stop a rent for getting it owned - Posted by alikin
Posted by alikin on August 19, 2003 at 04:41:47:
Hi,
I’ve here a interest question:
If I concluded a loan with a money/private lender, and I suddenly got enought and to spare money to buy property with money down. Can I close my loan with down payment now? Have I to pay some points, interest I should pay by borrowing?
I’m waiting for your answers:)
Re: Let me try - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on August 19, 2003 at 20:22:22:
You have purchased a property on a “rent to own” type of plan. Now you want to borrow cash and pay off the rent to own plan.
This should not be a problem at all. Your rent to own plan may contain a penalty clause, for early payoff. If there is a panalty for early payoff then it should be clearly stated in your paperwork. If it is not mentioned then you do not have it.
If you borrow funds to pay off your rent to own agreement there may be some costs to borrow the money from the new lender. This also should be clearly stated in the paperwork before you actually borrow the money.
It works like this, you arrange to borrow money to pay off the “rent to own” agreement. The first seller is then paid in full, and he delivers a deed to you. Then the lender who is loaning the money to you will have you sign a note for the money. The deed for the property that you just paid off will be the security for the new loan. You would then make payments to the new lender, and the first lender (rent to own seller) would be paid off, and out of the picture.
A title company, ar a real estate attorney can help you with this process.
Re: To stop a rent for getting it owned - Posted by I.R.
Posted by I.R. on August 19, 2003 at 10:48:52:
Your post is not at all clear and I think you’d be well advised to start over, posting clear facts, then asking clear, simple questions.
It looks like your English is maybe ESL (English as second language)& not the best, so maybe getting an educated native English speaker to help you word your post would be a help to you.
Re: Let me try - Posted by alikin
Posted by alikin on August 20, 2003 at 01:13:43:
Hi, Ed, I has only now cleared out where I’d done the error. I wanted to write “loan” in topic title (so it should be right “To stop loan for getting it owned”). I didn’t mean “rent to own” strategy.
I wanted to ask if you can pay off your loan when you have cash instead pay out it monthly. And if you can by this action avoid rest of a rate of interest.
Thank you.
Re: To stop a rent for getting it owned - Posted by alikin
Posted by alikin on August 19, 2003 at 11:40:33:
Yes, English isn’t a language which I so good know because I’m from german but you could also try to understand my question:) It isn’t so difficult.
Bis: IT IS POSSIBLE THAT I CEASE EXISTING LOAN AND REFINANCE IT WITH CASH?
I hope you’ll understand it!
Re: Let me try - Posted by Ed Copp
Posted by Ed Copp on August 20, 2003 at 19:50:41:
In most cases you can pay off the loan at any time and not owe any more interest.
Some notes contain a clause that obligates you to pay a penalty if you pay the loan off early. If this the case the terms will be stated in the note.
Re: To stop a rent for getting it owned - Posted by River City
Posted by River City on August 20, 2003 at 07:10:50:
Ed was correct in his post. Check your paperwork and see if there is a prepayment penalty. You would not be “refinancing” it with cash. You would be paying the balance in full with the cash, which is allowed. The question is whether or not you will have a prepayment penalty in addition to the balance owed.
By the way, I think you are doing good. Good for you for learning our difficult language.
Re: Let me try - Posted by alikin
Posted by alikin on August 21, 2003 at 05:17:50:
How early must it be to get a penalty enganging, or it depend on a provision or the terms?
Re: Let me try - Posted by Nate(DC)
Posted by Nate(DC) on August 21, 2003 at 12:15:21:
It all depends on what is written in the note. You need to read the note and find out what it says.
NT